I release an app that BOTH plays music AND is malware. Under this law, Apple can't ban the app (because it's malware) because the law prevents it to (because the app plays music, competing with one of Apple's apps).
The app is already illegal because of whatever other laws apply to it. You don't even have to have digital specific laws, any law dealing with fraud or theft will apply.
Bonus: you haven't read the Japanese law in the original Japanese legalese*, just an english summary.
* And since it's in legalese, you probably couldn't even if you spoke some Japanese.
I release an app that BOTH plays music AND is malware. Under this law, Apple can't ban the app (because it's malware) because the law prevents it to (because the app plays music, competing with one of Apple's apps).